Since NYSE’s first delisting announcement on Jan 1, Chinese investors have been adamant buyers. Mainland holdings under Connect in China Mobile Ltd, China Telecom Corp Ltd, and China Unicom Hong Kong Ltd, have jumped 37%, 28%, and 41%, respectively.
If you believe that :
- China will be the first country to deploy efficiently the 5G
- 5G technology will the future: The Global 5G technology market is anticipated to be at $5.53 billion in 2020 and is projected to reach $667.90 billion by 2026, registering a CAGR of 122.3% from 2021 to 2026. Asia-Pacific would be the highest contributor to the global market, with $2.20 billion in 2020, and is estimated to reach $329.09 billion by 2026, registering a CAGR of 130.7% during the forecast period… (Source Global 5G – GATE Advisory)
- Value stocks are interesting : China Telecom (PE: 7.78, P/B:0.47); China Unicom (PE: 10.25; P/B 0.42); China Mobile (PE:7.84; P/B: 0.8) – Source Refinitv
- These Chinese stocks have thin exposure to the US market and benefiting from a local population reaching 1.4 billion. The top ten foreigner shareholders are mainly passive fonds.
If you dig into figures, the worse is perhaps behind us.
- The Top 20 shareholders represent 2.84% of outstanding shares of China Unicom, 15.70% of China Telecom, and 3.88% of China Mobile.
- The US funds weigh 18.52% of China Telecom shares outstanding; 2.78% of China Unicom, and 4.18% of China Mobile. – Source Refinitv
If you can…. Time to reconsider these stocks!
